BACKGROUND INFORMATION DOCUMENT QUANTUM POWER OPERATIONS LIMITED Environmental and Social Impact Assessment [ESIA] for Proposed Liquefied Natural Gas (LNG) Project at Tema in the Greater Accra Region of Ghana SCOPING PROCESS Introduction Quantum Power Operations Limited (herein referred to as Quantum Power) is a developer, owner and operator of electricity generation assets and power-related infrastructure throughout Africa. Quantum Power intends to construct and develop a Liquefied Natural Gas (LNG) project. The proposed project is located at Tema in the Greater Accra Region and it s characterized by other such heavy industrial operations. The project will install, commission and operate the infrastructure required to import, store, re-gasify Liquefied Natural Gas ( LNG ) and deliver re-gasified LNG to off-takers in the Tema area for an initial period of ten (10) years. Prior to commencing with construction of the LNG facility, approvals are required in terms of the Environmental Permitting as by under Regulation 3 of Environmental Assessment Regulations 1999 (LI 1652). The competent authority for the Environmental and Social Impact Assessment (ESIA) process is the Environmental Protection Agency (EPA). Knight Piesold Ghana Limited has been appointed as the independent environmental assessment practitioner (EAP), to undertake the ESIA and associated public participation processes for this project DUE DATE FOR COMMENT: 25 TH JUNE, 2014
Purpose of this Document This document serves to provide you with a brief introduction to the proposed project and the manner in which Interested and Affected Parties (I&APs) can become involved in the ESIA process. Additional documents will be available at various stages during the environmental assessment process to provide I&APs with information and further opportunities to raise issues of concern and suggestions for enhanced benefits Project Background The proposed project if approved will be the first Liquefied Natural Gas (LNG) facility development in Ghana. The development will affect three main administrative districts (Tema, Kpone and Ningo Prampram) who may wonder what LNG is, so a brief introduction is provided here. LNG is produced at an LNG plant by cooling natural gas to a very low (cryogenic) temperature until the gas becomes a liquid. The process reduces the volume of the natural gas to 1/600th of its unliquefied volume. This much smaller volume allows large amounts of natural gas to be transported economically over long distances by special ships called LNG carriers. When the LNG is unloaded at an international port, it is usually transported via pipeline to a nearby re-gasification terminal, where the LNG is heated and returned to its gaseous state. The resultant natural gas is then distributed to customers via natural gas pipelines and reticulation systems.
PROJECT DESCRIPTION The project will install, commission and operate the infrastructure required to import, store, regasify Liquefied Natural Gas ( LNG ) and deliver regasified LNG to off-takers in the Tema area for an initial period of ten (10) years. Objectives To deliver natural gas to the Independent Power Producers ( IPPs ) and industrial consumers with initial focus on Tema and its environs. The project will provide a single contract point for end-users covering storage, regasification and transmission of Natural Gas. The Project will operate primarily on a tolling basis. The price of LNG will be a pass through. Project Components The proposed project shall have the following components and infrastructure; Floating Storage and Regasification Unit ( FSRU ) Offshore Mooring and Support for Floating Units ( FSRU as well as LNG Supply Vessels) Subsea Gas Pipeline Landing Facilities and Distribution AFFECTED ENVIRONMENT The proposed project will be located in the Heavy Industrial Area of the Tema Metropolis. The projects distributed and landing facilities will travel across Kpone Katamanso and Ningo Prampram Districts within the metropolitan area. Residential and agricultural (farming) activities are dotted along the project location sites. Other characteristic features of the landing area are; biodiversity spots, wetlands and scattered mangroves I. Floating Storage and Regasification Unit ( FSRU ) The FSRU will berth at the offshore mooring jetty. It will have a storage capacity of 170, 000 m 3. The FSRU initial send-out rate capability will be of 250MMscf/d (able to supply approx. 1250MW of combined cycle capacity) with ability to deliver up to 750MMscf/d II. Offshore Mooring and Support for Floating Units ( FSRU as well as LNG Supply Vessels) The Floating Units will be connected to a five (5) kilometers subsea pipeline attached to the offshore mooring jetty. The mooring system will rest on permanent piles in the seabed and support a permanently moored storage and regasification vessel, an LNG trading vessel and a riser from the subsea pipeline. III. Subsea Gas Pipeline Twelve (12) kilometers of 18-inch seabed pipe will be laid to transport re-gasified LNG from the offshore facility to the shore near Tema. The pressure and temperature of the pipeline will meet the requirements of the onshore pipeline distribution network to which it will be connected (see below for subsea gas pipeline design). IV. Distribution and Landing Facilities Construction of an 18-inch gas pipeline distribution network to supply off-takers at their plant gates via onshore landing facilities and a metering station. (see below for distribution and landing sites).
1.0 Proposed Subsea Gas Pipeline Design Network
2.0 Proposed LNG Distribution and Landing Facilities
PROJECT DELIVERY, STATUS AND TIMELINES By the initial market studies it is expected that the project will commission and deliver first gas by first quarter in 2016. Other completed aspects of the projected development are summarised below; A significant proportion of the preliminary front-end engineering and design (pre- FEED) has already taken place and the equity required for the project is available. Government of Ghana has MoU with the project and is willing to take up to 10% of the Project s equity through nominated public institutions. Award of MetOcean Study of the Proposed Project Site to IntecSea Appointment of Owner s Engineer in 4th quarter 2013 MoU and Term sheets with prospective off takers Selection Process of FSRU Provider underway
ENVIRONMENTAL AND SOCIAL IMPACT ASSESSMENT [ESIA] The objectives of the ESIA process are to provide: Interested and Affected Parties (I&APs) with adequate information to understand the potential environmental and socio economic impacts associated with the proposed project and opportunities for them to comment on the ESIA process; The engineering team with information that will assist them to incorporate effective measures into the design and execution of the project to minimise negative impacts and enhance benefits of the project; and The regulatory authorities with sufficient information to serve as a basis for sound decision making and grant of Environmental Permit. Legislative Requirements The proposed ESIA will be undertaken in terms of the Environmental Assessment Regulations 1999 (LI 1652) and the Environmental Protection Agency Act 1994 (Act 490). In addition, the following legislation will also be applicable to the propose project and the related legislative requirements will need to be fulfilled as part of the ESIA process: Energy Commission Act 1997 (Act 541 Ghana Maritime Authority Act 2002 (Act 630) Ghana Shipping (Protection of Offshore Operations and Assets) Regulations 2011 Oil in Navigable Waters Act, 1964, Act 235 Beaches Obstruction Ordinance of 1987 Cap 240 Lands (Statutory Wayleaves) Act 1963 (Act 186) Detailed legislative requirements of the proposed project will be presented during the Scoping phase. An integrated legislative approach will be adopted by Knight Piesold to identify all relevant legislation in relation to the project development. Key Environmental Considerations Identified Initial site visit to the project and project affected sites have considered the following estimated predicted impacts: Effects of noise on marine fauna and flora (especially marine mammals) Interference with fishing activities Effects on terrestrial ecology and biodiversity Interference with marine traffic Social economic, land ownership resource use Health and Safety
PUBLIC CONSULTATION AND PARTICIPATION Public participation and stakeholder consultation are a key component of environmental decision making process and will constitute a major part throughout the ESIA process. The consultation exercise and program will involve both institutional and public engagement. It will be directed and focused at promoting capacity building of stakeholders to the project development. A summary description of the public participation ESIA process and associated activities: 2 nd Quarter 2014 (May, 2014) PROJECT ANNOUNCEMENT Formal announcement of project to all stakeholders: Announcement letter and BID distribution; Placement of site notices; Placement of adverts Registration of I&APs. Key stakeholder / focus group meetings. 2 nd Quarter 2014 (June, 2014) SCOPING Announce availability of Draft Scoping Report for public review Lodge Draft Scoping Report available in the mass media Hold meetings with I&APs. Update Draft Scoping Report, Comment and Response Report. Submit Final Scoping Report to EPA and make available for public review period 3 rd Quarter 2014 (July-Aug, 2014) IMPACT ASSESSMENT Announce availability of Draft ESIA and PEMP Reports for review. Lodge Draft ESIA and EMP Reports available at public places Hold public meetings with I&APs. Update of Draft ESIA and PEMP Reports, Comment and Report Submit Final ESIA and PEMP Reports to EPA for public review 4 th Quarter 2014 (Sep, 2014) DECISION MAKING Announce decision from competent authorities to I&APs. Provide the needed information for appeals process in announcement Your registration as an I&AP and comments are important to this process. You are invited to raise issues of concern, identify opportunities and provide suggestions associated with the proposed project, pertaining to potential positive or negative environmental and social impacts which should be investigated during the ESIA process. You are invited to register as an IAP for PPP for this project. If you wish to be registered, please complete attached registration form and return to Knight Piésold (details below). WE THANK YOU FOR YOUR PARTICIPATION For additional information please contact: Knight Piésold Ghana Limited No. 20, 2 nd Close Airport Residential Area P.O. Box CT 4122, Cantonments, Accra p. +233 30 7021155 e. accra@knightpiésold.com